Problem: If the sales tax in your city is $8.4\%$, how much tax would you pay for an item that costs $\$125$ before tax? Round to the nearest cent.
Answer: In order to find the amount of sales tax you would pay, multiply the sales tax by the original price of the item. ${8.4\%} \times {\$125} =$ Percent means "out of one hundred," so $8.4\%$ is equivalent to $8.4 \div 100$ $8.4 \div 100 = 0.084$ Multiply the sales tax you just converted into a decimal by the original price to find the amount of sales tax that must be paid. Round to the nearest cent. $0.084$ $\times$ $$125$ = $$10.50$ You would pay $$10.50$ in sales tax.